40-419a. Refund upon cancellation of individual term policy; calculation.
40-419a
40-419a. Refund upon cancellation of individual term policy;calculation.Upon the cancellation of any individual term life insurancepolicy by the owner thereof, theinsurance company shall not refuse to refund unearned premiums for theremainder of the term for which premiums were paid. The amount of unearnedpremiums to be refunded shall equal the difference between the total premiumpaid and the amount derived by multiplying 1/3 of the quarterly rate by thenumber of months the policy was in effect.For the purposes of this section,"term life insurance" means a life insurance policy that provides a benefitonly if the insured dies within a period stated in the policy and is issuedfor level, increasing or decreasing amounts for a stated period or to a statedage.
History: L. 1991, ch. 131, § 1; July 1.